When the Fed is changing the quality of the assets it holds, this is called:
A)quantitative easing.
B)operation twist.
C)credit easing.
D)precommitment policy.

Question

Quizplus · Accepted Answer

Credit easing refers to the strategy where the central bank changes the composition of its assets to influence credit conditions. This can involve buying riskier or longer-term assets to lower borrowing costs and stimulate economic activity.

When the Fed Is Changing the Quality of the Assets